PIGEONS are set to be evicted from the empty shell of a Tyneside landmark to make way for a luxury hotel.

International developers have now won planning permission for the £20m Hotel Indigo in Newcastle city centre.

And builders are due to start work in January to have the venue finished for a grand opening by Christmas.

The famous Eagle Star House building, in Fenkle Street, was chosen to tap into Newcastle’s growing reputation as a cultural hot-spot.

The Hotel Indigo group – which is part of the world chain InterContinental Hotels – targets some of the greatest cities, and already operates in Shanghai, in China, New York and the Greek capital Athens.

And the new 148-bed, four-star complex, next to the city’s Assembly Rooms, is expected to create 80 jobs for local workers.

The hotel is being developed by Sanguine Hospitality Management Company. The firm’s managing director Nick Taplin said: “We looked at six sites in Newcastle, and the Eagle Star House blew us away. It’s an incredible space.

“The city is such a fantastic place to visit and we feel that we can create a top-class boutique hotel to rival any in the area.

“The quality and friendliness of the people attracted us as well. The standard of service they will offer will be excellent.

“In other areas of the country you have to train staff to be as friendly as the people in Newcastle, but it’s all here for us.

“It’s a pleasure to be branching out to Tyneside. The area has so much going for it and we want to be a part of that.”

Hotel Indigo Newcastle will be the developer’s first venture into the North East and only the fourth investment in the UK.

Bosses are also hoping to secure a residency from a Michelin-starred chef to run an exclusive brasserie and are in talks with several “celebrities”.

Last year, Newcastle and Gateshead attracted almost 19 million visitors, maintaining hotel occupancy levels of 77% despite the recession.

NewcastleGateshead Initiative, which promotes Tyneside to tourists all over the world, has backed the project.

A spokesman said: “The fact that big brand hotels are attracted to Newcastle and Gateshead shows that we are a world-class destination with a quality accommodation portfolio attracting important inward investment.”

Tyneside already boasts the top names in the hotel world, including a Hilton in Gateshead and a Malmaison on the Newcastle quayside.